House price growth continues to cool

Australia’s housing market continued to cool last month as capital cities recorded their second consecutive month of single-digit growth.

According to the RP data-Rismark Hedonic Home Value Index, house prices grew by a seasonally adjusted 0.5 per cent in May, up slightly on the 0.2 per cent recorded in April.

April’s result came after 16 months of strong house price growth that saw values in the year to May grow by an overall 12.1 per cent in capital cities.

RP Data’s director of research Tim Lawless commented: "This second consecutive month of single-digit annualised gains sends a signal that the double-digit growth rates recorded since January 2009 are behind us."

Such news may interest Aussies looking to compare home loans and secure a property. Mr Lawless notes that lower auction clearance rates, fewer housing finance commitments and weakening consumer confidence have all impacted on house prices.

Meanwhile, Mercer’s Worldwide Cost of Living Survey 2010 recently found that Australian cities offer the best value for money for expatriates living and working in the Asia-Pacific region.

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